Research On Confirmation And Measurement Of The Impairment Of Assets Group

The Ministry of Finance issued "The 8th Enterprise Accounting Standard—Impairment of Assets"(CAS No.8) in February,2006, and then formally come into force at listed companies on New Year's Day in 2007. CAS No.8 draws on international practice and introduces the concept of "asset group", which changes the basis of the previous provision for impairment of assets. CASNo.8 make determination on the signs of impairment of the asset group,provide a detailed measurement methods for the asset group's recoverable amount and increase the content of the disclosure of asset impairment.However, this conception is proposed in China for the first time, the research of many questions are not enough, especially the recognition and measurement of the asset group need further refinement. Systematic study of theoretical aspects of the recognition and measurement of impairment of asset group, you can deepen the theory; exploring its technology from the practical aspects can improve practical ability of asset impairment accounting group, which will help to improve our quality of accounting information for China's asset impairment accounting and the international convergence of positive significance.In view of these, this paper is based on to regulate research, firstly analyze some theoretical issues of the impairment of the asset group, carefully analyze CASNo.8, and use some of the cases to analyze the scope of the asset group, the recognition of impairment and to determine the impairment of the asset group measurement and some other issues. This paper begins with a comparison of IAS 36 and CASNo.8, analyzing the necessity of building the asset group, the problems of recognition and measurement of impairment of asset group domestically and abroad. And then the writer propose some solutions on the two issues have been studied.The Full paper is divided into four chapters:Chapter 1:Introduction. It describes the background and significance of this paper, analyze the research on the recognition and measurement of impairment of asset group domestically and aboard and give some brief comments.Chapter 2:The theoretical analysis-on impairment of the asset group. In this section, the writer describes the asset group's definition, characteristics, scope and reasons for building the asset group; the meaning of impairment of the asset group and at current some problems on recognition and measurement of the asset impairment in accounting profession in China.Chapter 3:The research on the recognition of impairment of asset group. In this section, the writer provides some ideas on the identification and recognition of impairment of the asset group, and analyzes some problems in our domestic country and gives some solutions.Chapter 4:The research on the measurement of impairment of asset group. In this part, the writer focus on the analysis of the asset impairment loss measurement, the impairment loss measurement related to goodwill and corporate assets, presents conclusions and suggestions for improvement. the concept of asset group was proposed for a very short time, currently the research on this question is not enough. Therefore, there are some inadequacies in this paper:lack of typical example of impairment of the asset group, so it is difficult to do empirical research and a comprehensive case analysis on the impairment of the asset group.The innovation of this paper lies on:(1) Analyze the concept of group assets deeply, analyze its structure, summarize its characteristics, proposed the concept of core assets, divide assets into two parts:sharing assets and controlled assets, which provide a base for the recognition and measurement of assets group.(2) Combined with the internal management practice, based on the independence of cash flows, the writer try to put forward a profit center-based method of identifying an asset group to the core assets as an indication of impairment of assets to determine the main group.(3) Combined with an indication of impairment, from the assets involved in the group share the characteristics of assets and controlled assets, the writer proposed to determine whether the impaired asset group specific procedures.(4) Discuss and determine the asset group's fair value less costs to net from the assets of groups involved in the sharing of assets and controlled assets perspectives.(5) Propose the method that determine the recoverable amount further proposed to the functioning of the core assets, based on the asset group as a whole expected future cash flow method.